UNDERSTANDING THE DIFFERENCE BETWEEN AN ESTATE SALE AND AN AUCTION

My mother recently passed away leaving property, both real and personal, to me, my two sisters and brother. My dad died a few years earlier. He was a pack rat, never willing to throw anything away. He was always buying things that he felt was a good deal, even though he didn’t need the items. Some items appear to have value and some we are not sure about. We received a letter from a company that claims they are “estate sale specialist.” My brother says we need to talk an auctioneer. What’s the difference?

An excellent question! When a family member dies and leaves real and personal property to the heirs, in most cases, the heirs have no idea how to liquidate the assets in the most cost efficient manner, assuming liquidation is the goal.

An estate sale is basically a “tag sale.”  It doesn't even come close to being compared to an auction. It can be very impersonal. An estate sale is more like a garage sale.  A “specialist” normally conducts the estate sale and receives a percentage of the revenue generated. Estate sales can last from one to three days, normally with a price reduction on day three.

The “estate sale” industry is an unregulated industry without any professional standards or Code of Ethics. There are areas of conflict in that unsold property ,in some cases, go to the estate sales company. Their idea of marketing is to run an ad in the paper and put out a sign.

Auctioneers are specialist in marketing. Auctioneering is a profession that is regulated at both the national and state level and does have a Code of Ethics to operate by. Most are full-time professionals while some may be part-time due to seasonal work. An auction ensures a wide range of bids, letting the bidders determine “market value.”

An auction creates excitement through the competitive bidding process. Compared to estate sales, auctions can bring highest possible fair market price for your property. Both real and personal property can be sold in one day, not over days. There is no haggling over price. An auction exposes your property to the largest pool of qualified buyers.

 While estate sale specialist do not want owners present on the day of the sale, (I wonder why?), the auctioneer encourages the owner to be present. Before you consider an “estate sale,” talk to your local auctioneer.

For more information on auctions, go to my website at www.canSellnow.com.